Snowflake would acquire Observe for $1 billion to strengthen its position in observability.
Snowflake is in advanced talks to acquire Observe for approximately $1 billion, according to Gurufocus. If the deal goes through, it will be the largest acquisition in the history of the cloud data platform.
Focus on AI workflows
Observe specializes in AI-driven observability and helps companies monitor applications and infrastructure through large-scale analysis of telemetry data. The company builds on top of Snowflake’s own database technology and uses AI to detect problems faster and reduce IT costs. With the acquisition, Snowflake aims to expand its offering towards full-stack observability, a domain that is becoming increasingly important in complex AI and cloud environments.
Snowflake has long positioned itself as a central data hub for analytics, data engineering, and AI. By adding Observe, it can better support customers in managing and optimizing AI workflows.
Financial growth
Snowflake has grown strongly in revenue over the past three years, but remains loss-making due to high investments. With a market value of approximately $77 billion, the company has sufficient scale to make targeted acquisitions, although investors are closely monitoring profitability and recent insider sales.